A group of investors is taking AmTrust Financial Services private to create a better environment to fix the problems that have been haunting the New York-based insurer. AmTrust needs to address financial controls as well as pricing and reserve adequacy issues.

Private equity firm Stone Point Capital, the Karfunkel Family, and the CEO of AmTrust Financial Services Barry Zyskind are acquiring the insurer in a transaction valued at approximately $2.7 billion.

The deal will see the investors acquiring the approximately 45 percent of the company's issued and outstanding common shares that the Karfunkel-Zyskind family and certain of its affiliates and related parties do not presently own or control.

"I believe that this transaction represents an exciting step forward for AmTrust, our employees, and the agents, brokers, partners, and customers we serve,” said Zyskind. “As a private enterprise, we will be able to focus on long-term decisions, without the emphasis on short-term results."